Positive returns.
In a year markets
delivered nothing.
FY 2025–26 punished passive equity: broad indices finished with negative returns from about −6.8% (Nifty 500) to −8.2% (Nifty 50), with peak drawdowns near 14–15% and negative Sharpe/Sortino on all three benchmarks. Clearmind strategies diverged — Polaris delivered a modest absolute gain with positive Sortino versus indices in the red; Optimus compounded at a strong double-digit return with Sharpe and Sortino above 1.
FY 2025–26 — A harsh tape
for buy-and-hold indices.
The year was defined by uneven trends, repeated risk-off phases, and stretches where broad Indian equities simply did not reward exposure. Nifty 50, Nifty 100, and Nifty 500 all finished the period with meaningfully negative returns — not a shallow dip, but a full-year headwind for long-only benchmarks.
Peak-to-trough stress was material: maximum drawdowns clustered around 14–15% across these indices, while average drawdowns stayed negative through the cycle — the classic profile of a year where patience alone did not pay.
In that setting, capital preservation and asymmetry mattered. Polaris aimed for steady, process-driven participation in equities; Optimus was positioned to harvest volatility when regimes shifted. Both reported outcomes that diverged from the benchmark experience — in scale and in character.
"All pain, no Sharpe" — how broad indices felt for many allocators in FY 2025–26: deep enough drawdowns with negative risk-adjusted returns.
Alpha vs Nifty 50 (−8.23%)
Absolute & risk-adjusted metrics
across all strategies.
Metrics through March 2026: Clearmind mandates vs Nifty 50, Nifty 100, and Nifty 500 (returns, drawdowns, Sharpe, Sortino).
Excess return vs Nifty 50 with positive Sortino (0.25) while the index posted negative Sharpe/Sortino — relative strength in a down year.
Return with Sharpe 1.04 and Sortino 1.14 — asymmetry delivered alongside materially better risk-adjusted metrics than broad equity beta.
Nifty 50 Sharpe −0.56 / Sortino −0.58; sister indices similarly negative — a year where taking passive equity risk did not pay on a risk-adjusted basis.
How each strategy performed
and why.
Discretionary PMS focused on conviction, risk control, and compounding across cycles — tested in a year when indices did not cooperate.
Algorithmic options-buying designed for asymmetric payoffs when volatility expands — returns remain episodic and path-dependent by design.
Month-by-month returns
show where alpha was made.
Where the alpha came from
Volatility-oriented strategies tend to print in bursts: a handful of months often explain most of the annual outcome. That pattern is visible in the monthly series — concentrated wins separated by quieter or negative stretches.
Return vs calendar path
The published ~45.9% return is a compound summary; it does not imply linear monthly progress. Large positive months can coexist with sharp drawdown months (e.g. stress during low-volatility or wrong-regime phases) within the same fiscal year.
Maximum drawdown context
The worst peak-to-trough episode in the series remains material (−26.13%). That is consistent with a long-volatility, options-buying engine — investors should budget emotionally and in portfolio sizing for that magnitude of swing.
The key insight
Optimus returns come in bursts, not linearly. Expect flat or painful intervals between events — that is the strategy working as designed, not a malfunction.
Different strategies require
different expectations.
“Different strategies require different expectations. Misaligned expectations lead to poor investment decisions.”
Understanding what a strategy is designed to do — and what it is not — is the most important factor in determining whether it is right for your portfolio.
Built to operate across
market conditions.
Clearmind strategies are not dependent on favourable markets. In a year where Nifty 50, 100, and 500 posted negative returns (from about −6.8% to −8.2%) with negative Sharpe and Sortino, Polaris preserved a modest positive absolute return with positive Sortino versus those benchmarks, while Optimus delivered strong asymmetry and compounding — each in line with its mandate.